The Institute of Chartered Accountants of India (ICAI) has released a comprehensive Implementation Guide to Standard on Auditing (SA) 580: Written Representations (2023) in the form of frequently asked questions (FAQs). The guide aims to help auditors effectively obtain and handle written representations and comply with SA 580, which is applicable to audits of financial statements for periods starting on or after April 1, 2009.
SA 580 outlines the auditor’s obligation to obtain written confirmation from management and those entrusted with governance to confirm the completeness, accuracy, and adherence to applicable financial reporting frameworks of the financial statements provided to the auditor. The ICAI Guide provides practical advice on executing the principles outlined in SA 580 and adhering to specific requirements related to written representations as specified by other Standards on Auditing.
Written representations are an essential source of audit evidence that complement other evidence obtained during the audit process. The implementation guide brought out by the AASB of the ICAI provides necessary guidelines for auditors to effectively comply with the requirements of SA 580 on various relevant aspects of handling written representation during the course of audit engagements.
By following the guidelines set out in SA 580 and the ICAI Implementation Guide, auditors can ensure that they obtain reliable written representations and fulfill their responsibility to provide an opinion on the financial statements in accordance with the applicable auditing standards. Use this guide to effectively handle written representations during your audit engagements and ensure compliance with SA 580.
ICAI Implementation Guide to SA 580: Written Representations for Auditors (Feb. 2023)